Air Products and Chemicals (APD) AI Stock Analysis

• Market Cap: $58.11B
• Dividend Yield: 2.82%
• Average Volume (3M): 1.27M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.73
• Revenue Growth: -0.52%
• EPS Growth: -110.29%
• Country: US
• Employees: 21,850
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 3.39
• Shares Outstanding: 222,590,240
• 10 Day Avg. Volume: 1,016,163
• 30 Day Avg. Volume: 1,268,620
• PEG Ratio: 1.40
• Price to Book (P/B): 4.04
• Price to Sales (P/S): 5.05
• P/FCF Ratio: 18.66
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: 6.62
• Enterprise Value/Gross Profit: 21.07
• Enterprise Value/Ebitda: 59.56
• 1Y Price Target: $310.71
• Price Target Upside: 19.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 12.99
• Revenue Forecast (FY): $12.49B

• Rating: 50 Neutral
• Price Target: $258.00 ▼(-1.10% Downside)

Air Products and Chemicals' overall stock score reflects significant financial challenges, including negative profitability and cash flow issues. While the earnings call provided some positive insights, such as strong EPS and dividend growth, the technical analysis indicates a bearish trend, and the valuation is concerning due to negative earnings. The company's ability to address operational inefficiencies and improve cash flow will be crucial for future performance.

Positive Factors

Consistent Dividend Growth

The company's long-standing commitment to increasing dividends reflects strong cash flow management and shareholder value prioritization, indicating financial stability.

Strategic Project Execution

Completion of the NEOM project will enhance APD's renewable energy capabilities, supporting long-term growth in sustainable energy markets.

Revenue from Long-term Contracts

Long-term contracts provide stable cash flows and reduce revenue volatility, ensuring predictable financial performance over time.

Negative Factors

Negative Profitability

Negative profitability and declining margins indicate operational challenges, which could hinder long-term financial health and growth potential.

Rising Debt Levels

Increased leverage can strain financial flexibility, impacting the company's ability to invest in growth opportunities and manage economic downturns.

Cash Flow Issues

Negative cash flow growth suggests challenges in converting income into cash, limiting the company's ability to fund operations and investments.

Air Products and Chemicals Business Overview & Revenue Model

Company Description

Air Products and Chemicals, Inc. provides atmospheric gases, process and specialty gases, equipment, and services worldwide. The company produces atmospheric gases, including oxygen, nitrogen, and argon; process gases, such as hydrogen, helium, carbon dioxide, carbon monoxide, syngas; specialty gases; and equipment for the production or processing of gases comprising air separation units and non-cryogenic generators for customers in various industries, including refining, chemical, gasification, metals, manufacturing, food and beverage, electronics, magnetic resonance imaging, energy production and refining, and metals. It also designs and manufactures equipment for air separation, hydrocarbon recovery and purification, natural gas liquefaction, and liquid helium and liquid hydrogen transport and storage. Air Products and Chemicals, Inc. has a strategic collaboration with Baker Hughes Company to develop hydrogen compression systems. The company was founded in 1940 and is headquartered in Allentown, Pennsylvania.

How the Company Makes Money

Air Products generates revenue primarily through the sale of industrial gases and related equipment. Its revenue model is based on long-term contracts and supply agreements, which provide stable cash flows. Key revenue streams include the sale of gases to customers in sectors such as refining, petrochemicals, and manufacturing, as well as the development and operation of large-scale gas production facilities. Additionally, the company benefits from strategic partnerships and joint ventures, particularly in hydrogen production and carbon capture technologies, which enhance its market position and drive growth. Factors contributing to its earnings include the increasing demand for clean energy solutions, technological advancements in gas applications, and expanding markets in emerging economies.

Air Products and Chemicals Financial Statement Overview

Summary

Air Products and Chemicals faces significant financial challenges in the TTM period, with declining revenue, negative profitability, and cash flow issues. The balance sheet remains relatively stable, but increased leverage and negative return on equity are concerns. The company needs to address operational inefficiencies and improve cash flow generation to regain financial stability and growth.

Income Statement

Balance Sheet

Cash Flow

Breakdown	TTM	Dec 2025	Dec 2025	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	12.04B	12.04B	―	12.10B	12.60B	12.70B
Gross Profit	3.78B	3.78B	―	3.93B	3.77B	3.36B
EBITDA	1.34B	1.34B	―	6.49B	4.42B	4.22B
Net Income	-394.50M	-394.50M	―	3.83B	2.30B	2.26B
Balance Sheet
Total Assets	41.06B	41.06B	―	39.57B	32.00B	27.19B
Cash, Cash Equivalents and Short-Term Investments	1.86B	1.86B	―	2.98B	1.95B	3.30B
Total Debt	18.41B	18.41B	―	15.01B	11.03B	8.33B
Total Liabilities	23.71B	23.71B	―	20.90B	16.34B	13.49B
Stockholders Equity	15.02B	15.02B	―	17.04B	14.31B	13.14B
Cash Flow
Free Cash Flow	-3.77B	-3.77B	―	-3.15B	-1.42B	303.70M
Operating Cash Flow	3.26B	3.26B	―	3.65B	3.21B	3.23B
Investing Cash Flow	-7.17B	-6.58B	―	-4.92B	-5.68B	-3.86B
Financing Cash Flow	2.80B	2.21B	―	2.62B	1.37B	-1.00B

Air Products and Chemicals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 260.86
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APD, the sentiment is Positive. The current price of 260.86 is above the 20-day moving average (MA) of 255.21, above the 50-day MA of 258.98, and below the 200-day MA of 277.16, indicating a neutral trend. The MACD of 0.34 indicates Negative momentum. The RSI at 55.29 is Neutral, neither overbought nor oversold. The STOCH value of 81.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for APD.

Air Products and Chemicals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHW	72 Outperform	$84.65B	33.35	59.94%	0.93%	0.96%	1.96%
PPG	67 Neutral	$22.45B	17.86	16.31%	2.78%	-12.98%	-11.34%
ECL	66 Neutral	$77.94B	39.58	21.73%	0.94%	1.38%	-2.54%
LIN	66 Neutral	$191.60B	27.47	18.24%	1.32%	1.45%	13.21%
DD	62 Neutral	$16.66B	―	-0.46%	1.79%	2.42%	-196.54%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
APD	50 Neutral	$58.11B	―	-2.41%	2.82%	-0.52%	-110.29%

Air Products and Chemicals Corporate Events

Air Products’ Earnings Call Highlights Growth Amid Challenges

Air Products and Chemicals, Inc. recently held its earnings call, showcasing a generally positive financial performance. The company reported strong earnings and consistent dividend growth, although it acknowledged significant challenges, particularly in the helium market and project execution, which contribute to a cautious outlook for fiscal 2026.

Air Products Exceeds EPS Guidance Amidst Challenges

Air Products and Chemicals, Inc. is a leading industrial gases company that supplies essential gases, equipment, and expertise to various industries worldwide, with a strong focus on clean hydrogen projects supporting energy transitions. In its fiscal 2025 report, Air Products exceeded its adjusted earnings per share guidance midpoint, despite reporting a GAAP loss per share of $1.74 due to significant charges related to business and asset actions. The company achieved an adjusted EPS of $12.03 and adjusted operating income of $2.9 billion for the year. Key financial metrics showed a slight decrease in sales and adjusted operating income compared to the previous year, primarily due to lower volumes and higher costs. However, Air Products demonstrated resilience through pricing strategies and operational excellence. Looking forward, Air Products projects an adjusted EPS of $12.85 to $13.15 for fiscal 2026, with capital expenditures expected to reach approximately $4 billion, as the company continues to focus on high-return industrial gas projects and operational improvements.

Air Products Elects Howard Ungerleider to Board

On August 18, 2025, Air Products and Chemicals, Inc. announced the election of Howard Ungerleider to its Board of Directors, effective September 1, 2025. Ungerleider, with extensive experience in the chemicals and specialty materials industries, will serve on the Audit and Finance Committee. His appointment is expected to enhance the company’s operational excellence and capital management as it continues to focus on creating exceptional value.

The most recent analyst rating on (APD) stock is a Hold with a $317.00 price target. To see the full list of analyst forecasts on Air Products and Chemicals stock, see the APD Stock Forecast page.